2055, Limestone RD STE 200-C, Wilmington DE 19808
+91-9097572443
info@txncapitalllc.com
Saurobh Barick
9:00 am - 6:00 pmIRS-Compliant Affordable 409A Valuation Services Cost $500 – A Complete Guide
Considering providing stock options? Verify that your valuation is accurate and complies with IRS regulations. For as little as $500, Transaction Capital LLC (TXN Capital LLC) provides precise, audit-ready 409A valuations that are suited for private businesses and startups. This is your comprehensive reference on valuation techniques, compliance, price, and selecting the best valuation partner.
What Is a 409A Valuation?
The Fair Market Value (FMV) of your private company’s common stock is established by a 409A valuation. When determining striking prices, it is essential for:
- Incentive Stock Options (ISOs)
- Non-Qualified Stock Options (NQSOs)
- Restricted Stock Units (RSUs)
Without a proper 409A, you risk:
- Employee income taxes are due immediately.
- IRS penalty of 20%
- Interest accrued on delinquent taxes.
A third-party, IRS-compliant valuation will keep you safe.
IRS Safe Harbour Compliance: What Is It?
You can avoid IRS fines with a Safe Harbour 409A if:
- Completed by an independent, certified appraiser
- The IRS Revenue Ruling 59-60 is followed.
- It is updated every year or if significant changes occur.
Here at TXN Capital LLC, we adhere to:
- Consistent Professional Appraisal Practice Standards (USPAP)
- SSVS No. 1 (AICPA Standards for Valuation)
- International Valuation Standards, or IVS,
- No quick corners, complete protection, and complete compliance.
Who Performs Your 409A Valuation?
Your valuation is only handled by qualified experts:
- Accredited Senior Appraiser, or ASA®
- Accredited in Business Valuation, or ABV®
- Certified Valuation Analyst, or CVA®
All reports contain:
- Methods presented in detail
- Standardised format that is ready for an audit
- Certifications of appraisal that have been signed
- Trusted by investors, auditors, and the IRS.
What’s Inside a TXN Capital 409A Report?
Our thorough reports can be used as presentations for:
- Boards
- Those who invest
- The Auditors
- The tax authorities
Comprises:
- Transmittal Letter
- Date of Valuation and Premise
- Industry and Financial Analysis
- Analysis of SWOT
- Methods in Detail (used and excluded)
- Premiums & Discounts (where applicable)
- Certified by signature
No templates. Only expert, customised reports.
409A Valuation Pricing
Simple, transparent tiers:
Company Complexcity | Price Range |
|---|---|
Simple Cap Table | Starting at $ 500 |
Moderate Complexity | $ 750 – $ 1,000 |
Complex Structures | $ 1,250-$1,500 |
Expedited Turnaround ( 1-2 days) | +$ 500 |
Pricing depends on:
- Distribute the class structure.
- Quantities and kinds of securities
- History of Funding
- Immediacy
What Determines the Price of Your 409A?
Among the factors are:
- Company Stage: Series C/D+ Early vs. Late Stage
- Cap Table Complexity: Several SAFEs, notes, or share classes
- Revenue Size: Predicting ARR or contract requirements
- Industry Type: Fintech, Climate Tech, Biotech, and SaaS = Unique benchmarks
- Turnaround Time: Quicker delivery equals higher prices.
Methods of Valuation We Employ
We customise approaches based on your data and stage:
- Backsolve Method (OPM): For businesses supported by venture capital, the Backsolve Method (OPM)
- Discounted Cash Flow (DCF): For companies that make money
- Market Comparables: Comparables in the market to public or M&A standards
- Cost-to-Recreate: For startups or businesses with a lot of IP
All techniques are supported by evidence and adhere to USPAP.
When to Update Your 409A Valuation?
Make changes to your 409A if:
- It’s been a year.
- More money was raised.
- significant business event (product launch, M&A, significant revenue shift)
- IRS risk is a result of outdated valuations. Keep yourself safe.
What You’ll Need to Start
To begin your 409A, just supply:
- Financials for two to three years (monthly if early-stage)
- Forecasts or growth projections for three to five years
- Cap table (export from Excel or Carta)
- Overview or pitch deck
- Details of the funding round (SAFEs, notes, and priced rounds)
- Easy onboarding. Quick turnaround.
IRS Compliance Checklist: Pick the Correct Colleague
IRS Compliance Checklist: Choose the Right Partner
- IRS Safe Harbour Compliance
- Certified Analysts (ABV, ASA, CVA)
- Complete Audit Defence
- TXN Capital LLC satisfies every requirement, no matter what.
Knowledge of the industry and preparedness for audits
Our areas of expertise include:
- Startups are using stock options-backed companies with intricate cap tables (notes, preferred equity, and SAFEs)
- All TXN Capital 409As come with:
- Modelling safe and convertible notes
- Study of strike prices
- Payouts using waterfall modelling
Ready for an audit. Investor-ready. Future-proof.
Get a 409A Valuation You Can Trust
Protect your business and your team’s future.